Vol. 511 No. 2
80 Mr. Aylward asked the Minister for Finance if representatives of a community are liable for stamp duty at 20% from the sale of a hall which is parish property when the proceeds from the sale are being used to provide a new hall and sports facility leaving them with no profit. [23877/99]
Stamp duty is payable by the buyer on the purchase of a property. The seller has no liability to stamp duty. However, there could be a capital gains tax liability for the seller on the disposal of an asset. When an asset is disposed of, a capital gain arises on the increase in the asset's value over the period of ownership. This gain is liable to capital gains tax, in general, at a rate of 20%. The orig inal acquisition cost of the asset is adjusted upwards for inflation, so that the real rather the nominal gain is subject to tax.
The case outlined by the Deputy may qualify for exemption from capital gains tax under section 609 of the Taxes Consolidation Act 1997, which provides that any gains accruing to charities are not liable to capital gains tax. However, the information provided does not contain enough detail for this point to be answered. It is suggested that the parties affected should contact the Revenue Commissioners to explore this possibility.
